buydown

Englisch - Englisch

Definition von buydown im Englisch Englisch wörterbuch

An accelerated repayment of the principal of a loan

A payment by a third-party to a lender to reduce some of all of the payments otherwise required, especially in first few years of the loan, thereby enhancing the apparent quality of the loan

A payment to the lender from the seller, buyer or third party causing the lender to reduce the interest rate during the early years of the loan

A reduction in the interest rate or monthly payments accomplished by payment of an additional fee The reduced interest rate may hold for all or part of the loan term

A way to reduce the Interest Rate that a bank is charging you and qualify for a more expensive home This Interest Rate reduction only applies for the first few years The bank is willing to do this for a lump sum fee, usually at the beginning of the mortgage This may be a very smart way for you to reduce the Interest that you will have to pay over the life of the mortgage Builders also Buy Down mortgages, usually so that they can entice new homebuyers with the attraction of below market rates They simply add the cost of the Buy Down onto the price of the new home See also Interest Rate Buydowns

1 Occurs when the person selling you real estate pays your lender a certain fee in order to reduce the rate of interest or monthly payments on your mortgage The reduced interest rate may hold for all or part of the loan term

With a buydown, the seller pays an amount to the lender so that the lender can give you a lower rate and lower payments, usually for an early period of a loan The seller may increase the sales price to cover the cost of the buydown

A payment to the lender from the seller, buyer or third party, causing the lender to reduce the interest rate

A payment to the lender from the seller, buyer or third party causing the lender to reduce the interest rate during the term of the mortgage

Obtaining a lower interest rate (buying down the rate) by paying additional points to the lender The lower rate may apply for the full duration of the loan or for just the first few years A buydown may be used to qualify a borrower who would otherwise not qualify This is because a buydown results in lower payments which are easier to qualify for

A payment to the lender from the seller, buyer, third party, or some combination of these, causing the lender to reduce the interest rate during the early years of a loan The buydown is usually for the first 1 to 5 years of the loan

When the seller, builder or buyer pays an amount of money up front to the lender to reduce monthly payments during the first few years of a mortgage Buydowns can occur in both fixed and adjustable rate mortgages

A payment to the lender from the seller, buyer, or third party, or some combination of these, that causes the lender to reduce the interest rate during the early years of the loan

A payment to the lender from the seller, buyer, or third party, allowing the lender to reduce the interest rate

Allows loans to be made at less-than-market interest rates by paying front-end discounts The interest rate is brought down for a temporary period, usually from one to three years In oder to acquire this discount, a lump sum is paid and held in an account used to supplement the borrower's monthly payment After the discount period, the payment is calculated as the note rate

[Back to top] When the lender and/or the home builder subsidizes the mortgage by lowering the interest rate during the first few years of the loan While the payments are initially low, they will increase when the subsidy expires

When the lender and/or the home builder subsidizes the mortgage by lowering the interest rate during the first few years of the loan Rates do rise during the term, however the initial lower rate helps the borrower qualify for an amount they may otherwise not qualify for This is an excellent instrument for those who anticipate the ability to pay slightly increasing payments in subsequent years -C-

A lump sum payment made to the creditor by the borrower or by a third party to reduce the amount of some or all of the consumer's periodic payments to repay the indebtedness

With a buydown, the seller pays an amount to the lender so that the lender can give you a lower rate and lower payment The seller may increase the sales price to cover the cost of the buydown Buydowns can occur in all types of mortgages

A payment to the lender from the seller, buyer, or third party, causing the lender to reduce the interest rate

When the lender and/or the home builder subsidizes the mortgage by lowering the interest rate during the first few years of the loan While the payments are initially low, they will increase when the subsidy expires

A payment to the lender from the seller, buyer or third party, causing the lender to reduce the interest rate, either for a temporary period or for the life of the loan

Synonyme

prepayment, amortization

Etymologie

() buy +‎ down